StemCells Inc (NASDAQ:STEM) and Microbot Medical Ltd., a private company organized under the laws of the State of Israel (“Microbot”), today announced that they have entered into a definitive merger agreement, with plans to pursue the development of robotics based medical devices for the treatment of cerebrospinal fluid and gastrointestinal disorders, as well as other conditions.
“This transaction concludes an extensive search for strategic alternatives conducted by StemCells since we failed to see robust clinical results in our Phase II clinical study of human neural stem cells in chronic spinal cord injury,” said Ian Massey, the CEO of StemCells, Inc. “We believe both our investors and the market at large will see the potential of Microbot’s robotics platform, specifically its catheter and shunt technologies, and will appreciate Microbot’s overall business opportunities and potential.”
Harel Gadot, the CEO & Chairman of Microbot added, “We are pleased that this transaction will give us a presence in the U.S. capital markets, and we are very excited to continue advancing the development of our proprietary technologies that we believe have the potential to improve the lives of many patients globally. We thank StemCells for its efforts and contributions to improving human health over the years.” (Original Source)
Shares of StemCells jumped nearly 21% to $0.45 in pre-market trading. STEM has a 1-year high of $7.56 and a 1-year low of $0.33. The stock’s 50-day moving average is $0.39 and its 200-day moving average is $2.26.
On the ratings front, StemCells has been the subject of a number of recent research reports. In a report issued on May 31, Maxim Group analyst Jason Kolbert downgraded STEM to Hold. Separately, on May 10, H.C. Wainwright’s Ram Selvaraju reiterated a Buy rating on the stock and has a price target of $18.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jason Kolbert and Ram Selvaraju have a total average return of -16.1% and -0.1% respectively. Kolbert has a success rate of 27% and is ranked #4027 out of 4121 analysts, while Selvaraju has a success rate of 43% and is ranked #2846.
StemCells, Inc. engages in the research, development and commercialization of stem cell therapeutics and related tools and technologies for academia and industry. The company is focused on developing and commercializing stem and progenitor cells as the basis for novel therapeutics and therapies; and cells and related tools and technologies to enable stem cell-based research and drug discovery and development. StemCells research and development efforts are focused on identifying and developing stem and progenitor cells as potential therapeutic agents.